Wanted: a Scottish opposition leader. Please apply to Holyrood, and soon. Must have firm views, ability to revive own party and lots of luck. Willingness to tackle Alex Salmond essential. All reasonable offers considered.

Yesterday, in the absence of such a figure, Scotland's first minister once again presented himself as the master of his nation. Elected for a second term this year with an unprecedented majority, Mr Salmond set out a legislative programme which makes up in bulk what it lacks in daring. His poll rating is strong and his opponents are in disarray. Both Labour and the Conservatives are searching for leaders, while Lib Dem support shrivels. The Tory frontrunner had to propose the abolition and rebirth of his own party to attract attention in England: an idea whose merits may attract everyone other than Scottish Conservatives.

Even a modest man might have cause to be pleased with himself in such circumstances, and Mr Salmond is not known for his modesty. In that lies both his strength and his weakness. He set out a government programme that includes a the creation of a Scottish police force and plans for a minimum price on alcohol but he did little to confront Scotland with the more serious challenges ahead. These have less to do with the independence referendum that may come at some point (and what polls suggest is growing but still minority support for a breakaway) than financial reality.

Since devolution Scottish governments have made their reputation by spending money differently to the rest of Britain. From now on they are going to have to start saving it and raising it as well. Indeed, as important to Scotland's future as the SNP programme is the Scotland bill, a piece of legislation that deserves greater scrutiny than it is getting. This implements the report of the Calman commission and, among other things, gives Scotland a great deal of freedom to raise or lower taxation, and borrow a limited amount money. UK taxation in Scotland will be reduced, leaving Scots to make up the difference as they wish. It is, one Lib Dem minister told the Lords this week, "the biggest transfer of fiscal responsibility within the UK since the Act of Union in 1707".

This is an important step towards a more mature form of devolution, perhaps limiting Mr Salmond's ability to present himself as the champion of Scottish interests against English interference. It also increases the need for a functioning Scottish political opposition. Labour needs a new leader who can "cut through the fog of politics", Alistair Darling told the BBC yesterday. Perhaps the party should consider knocking on the door of its Scottish former chancellor turned author.